Gordon: DOFs concerns on Tourism Act misplaced

Senator Richard J. Gordon, author of the Tourism Act, yesterday downplayed the reports made by the Department of Finance (DOF) saying that the government will lose P5 Billion in annual revenues from the proposed creation of Tourism enterprise zones under the Tourism bill.

Government isnt losing revenue over something that isnt there because there have been no new investments in tourism. If you have a good and dynamic Tourism Secretary, and you will get those tourism zones organized quickly so there can be new hotels, new businesses, new jobs, and the millions of tourists will come. Then we can bring billions of tourist dollars in, Gordon said.

Gordon, responding to the DOFs concerns that his Tourism Act would affect the governments revenue and budgetary programs, explained that the five billion pesos from the government to be invested in tourism isnt even 1% of governments trillion peso budget.

The money will come from corporations like PAGCOR, Duty-Free and the airports, which precisely survive and grow because of tourism. More importantly, it hardly compares with the hundreds of millions that Singapore , Thailand and Malaysia are spending on tourism promotions and development. But that investment, with proper leadership from the Secretary, can mean that we will have 10 million tourists annually in ten years. Ten million tourists mean ten billion dollars five hundred billion pesos, or half the governments budget directly into the economy. That means millions of jobs and opportunities for the country. The DOF will find the money there. Gordon emphasized.

When I was Tourism Secretary, the President committed to boosting tourism, even making it a super-cabinet position. The President recognizes the need to overhaul the industry. Thats why the President certi fied the tourism bill as urgent, Gordon said.

He also insisted that tourism is the biggest industry in the world, and despite all the beauty of our country, we dont even get 1% of it.

If we focus on tourism, we will generate jobs and opportunities for all. We will widen the tax base and get the revenues indirectly, just as we see Subic with its tax incentives bringing in billions in investment and revenues today.

The Senate recently passed the Tourism Act. A similar bill is awaiting approval by the House of Representatives.

Lets not forget that being in government is about serving the people. Our concern for governments finances resulted in Congress approval of all sorts of tax measures. But we also have to focus on key industries in creating jobs for our people, Gordon pointed out.

Gordon also emphasized that the incentives being offered by TEZA are not that different from PEZA. The differences are there because TEZA to focus on tourism, for investors to go to the regions of the country, and put in the infrastructure that should have been put in by government. We waited until the last minute for the fiscal rationalization bill to be passed so that we can adjust our bill to it. But when it became apparent that the rationalization wouldnt push through, we had to put tourism on the table, If the DOF wants, we can work in a sunset provision to the tax incentives. But we have to make this work. he added.

I commit to make this bill a reality, just as I made Subic a reality, just as I made tourism grow even at the height of Abu Sayyaf, 9/11, SARS, bird flu, and the Bali Bombing. If there is leadership in the DOT, the industry can take this bill and finally take off. We waited long enough for these reforms. We cannot wait another three years to get this bill through. Otherwise this will be another of the many, many lost opportunities of our country.